Cato Corporation (CATO)vsLululemon Athletica Inc. (LULU)
CATO
Cato Corporation
$3.18
-3.05%
CONSUMER CYCLICAL · Cap: $65.47M
LULU
Lululemon Athletica Inc.
$114.23
-8.56%
CONSUMER CYCLICAL · Cap: $13.49B
Smart Verdict
WallStSmart Research — data-driven comparison
Lululemon Athletica Inc. generates 1611% more annual revenue ($11.20B vs $654.67M). LULU leads profitability with a 13.0% profit margin vs 0.0%. LULU appears more attractively valued with a PEG of 0.58. LULU earns a higher WallStSmart Score of 64/100 (C+).
CATO
Buy57
out of 100
Grade: C
LULU
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+76.6%
Fair Value
$12.93
Current Price
$3.18
$9.75 discount
Margin of Safety
+70.7%
Fair Value
$600.18
Current Price
$114.23
$485.95 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 181.7% YoY
Attractively priced relative to earnings
Every $100 of equity generates 30 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Reasonable price relative to book value
Areas to Watch
0.5% revenue growth
Grey zone — moderate risk
Smaller company, higher risk/reward
0.0% margin — thin
4.3% revenue growth
Weak financial health signals
Earnings declined 35.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : CATO
The strongest argument for CATO centers on Price/Book, EPS Growth. PEG of 1.17 suggests the stock is reasonably priced for its growth.
Bull Case : LULU
The strongest argument for LULU centers on P/E Ratio, Return on Equity, Altman Z-Score. PEG of 0.58 suggests the stock is reasonably priced for its growth.
Bear Case : CATO
The primary concerns for CATO are Revenue Growth, Altman Z-Score, Market Cap. Thin 0.0% margins leave little buffer for downturns.
Bear Case : LULU
The primary concerns for LULU are Revenue Growth, Piotroski F-Score, EPS Growth.
Key Dynamics to Monitor
LULU carries more volatility with a beta of 0.86 — expect wider price swings.
LULU is growing revenue faster at 4.3% — sustainability is the question.
LULU generates stronger free cash flow (87M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LULU scores higher overall (64/100 vs 57/100). CATO offers better value entry with a 76.6% margin of safety. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Cato Corporation
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Cato Corporation is a specialty clothing and fashion accessories retailer primarily in the southeastern United States. The company is headquartered in Charlotte, North Carolina.
Lululemon Athletica Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
lululemon athletica inc. The company is headquartered in Vancouver, Canada.
Visit Website →Compare with Other APPAREL RETAIL Stocks
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